PepsiCo on Friday reported quarterly earnings and revenue with analysts' expectations, but said the expects earnings for 2019 amid currency headwinds, rising effective tax rate and increased investments in advertising.
For the fourth quarter, PepsiCo earned $ 1.49 per share, excluding merger and integration charges, net tax benefits and other items, meeting Wall Street's expectations.
The company reported no sales of $ 19.52 billion, matching analysts' expectations and unchanged from a year earlier.
Here's what the company reported with what was Wall Street expecting, based on a survey of analysts at Refinitiv: share: $ 1.49 vs. $ 1.49 expected
PepsiCo has been investing in advertising and marketing for its North American beverage business to help revive brands like Pepsi and Mountain Dew sodas, as they face steep competition from Coca-Cola. Those investments have contributed to the growth of the North American beverage business. The comeback continued into the quarter with the unit posting 2 percent growth.
Its snack business, meantime, remained strong, delivering 4 percent organic revenue growth in North America for the fourth quarter. PepsiCo said Friday it is continuing to add more nutritious snacking options like Off the Eaten Path and Sunchips Last year, it only acquired snacks, which makes fruit and vegetable snacks.
Along with expected investments in 2019, PepsiCo said Friday will also continue to target targeting annual savings of at least $ 1 billion through 2023. It will achieve those savings part through automation, changing its go-to market systems and simplifying its organization. In December, PepsiCo completed its $ 3.2 billion acquisition of SodaStream, the at-home sparkling drink maker. With the exception of the SodaStream deal, PepsiCo under the form of CEO Indra Nooyi largely stayed away from making deals larger than $ 200 million in her last few years as chief executive. Current CEO Ramon Laguarta took the rain in October.
PepsiCo reported fiscal fourth-quarter net income of $ 6.85 billion, or $ 4.83 per share, up from a loss of $ 710 million, or 50 cents per share, a year earlier.  The company also announced Friday that it is increasing its dividend by 3 percent, to $ 3.82 from $ 3.71, beginning in June.
Correction: Pepsi's planned 2019 investments include those for advertising and marketing. A previous version misstated the nature of them.